Reply To: Traders Market Weekly: Yield Inversion Therapy Kill Growth To Kill Inflation


The employment report has fed into expectations for a 50-basis-point hike next month. To wit, the CME FedWatch Tool is currently assigning a 75.5% probability for a 50-bps hike at the May meeting, versus 69.4% yesterday.

The Treasury market has reacted negatively, pushing yields higher in a re-inversion trade. The 2-yr yield is up 15 basis points to 2.43%, and the 10-yr yield is up nine basis points to 2.42%.